The ESG approach for businesses is growing

Companies and sustainability: the ESG approach is growing. 59% of Italian companies have an ESG Committee, in line with 61% of global companies. The results of the fifth edition of the “Corporate Social Investment and ESG – Global Impact at Scale” research by Dynamo Academy and SDA Bocconi Sustainability Lab speak for themselves: companies are acting in an organized manner regarding their sustainability strategy. While 59% of companies have established an ESG/Sustainability Committee, in some sectors the percentages are higher: 71% for healthcare, 69% for transportation, 68% for consumer goods, and 65% for the manufacturing industry. Furthermore, 37% of companies have joined the United Nations Global Compact (UNGC), which aims to encourage companies to adopt sustainable policies and make the results of their actions public. 44% of the surveyed companies prepare, and potentially publish, their own sustainability strategy and strategic action plan, with percentages rising in the transportation (69%), consumer goods (59%), and energy (55%) sectors. 67% of companies refer to the Sustainable Development Goals (SDGs) in their strategy. «In the surveyed companies making ESG investments, “a model of active philanthropy is increasingly emerging, which sees social organizations as active partners to be involved and supported, in order to co-create value and generate lasting change in the modus operandi.” This phrase, already present in previous editions of the research, which we have been carrying out with Dynamo for years, perfectly captures the trends found in the current edition. The broader objective is to understand the greatest opportunities for companies to create increasingly concrete, measurable, and accountable sustainable value. This is in line with the concept of transformative sustainability: in the ongoing transition, companies are innovating their business models to be increasingly sustainable, with an integrated approach to strategy, in order to maximize opportunities that can create value. We are on the right track, but there is still a long way to go, and quickly!» commented Francesco Perrini, Associate Dean for Sustainability, DEI & ICE and Director of the Sustainability Lab at SDA Bocconi School of Management. This release expands the scope from purely philanthropic action to sustainable action, and investigates investments in communities and companies' ESG approach, with particular relevance given to social sustainability. Its structure allows for a comparison with Global Impact at Scale, an analysis by the global CECP (Chief Executives for Corporate Purpose) network, of which Dynamo Academy is a partner and contributor, on companies' actions on ESG and social investment issues globally.

«The international benchmark provides guidance to Italian companies to increase their impact in communities. One indication concerns the need for ‘S’ reporting, both to find shared metrics and to enhance the actions taken.» This is the comment from Serena Porcari, President and CEO of Dynamo Academy. While 98% of the global sample uses ESG standards and metrics, 54% consider measuring 'S' challenging, compared to 10% for 'G', 6% for 'E', and 33% for all three topics jointly. «The other relevant aspect emerging from the benchmark,» Porcari continues, «is the opportunity to work on Diversity, Equity, and Inclusion with concrete actions within companies.» The overview, when compared with a global sample of companies, thus suggests key trends for the future: investment in internal stakeholders, the search for common metrics for 'S' reporting, and the pursuit of concreteness for Diversity, Equity, and Inclusion actions.

This is what emerges from the “Corporate Social Investment and ESG – Global Impact at Scale” research by Dynamo Academy and SDA Bocconi Sustainability Lab, now in its fifth edition. From purely philanthropic action to sustainable action, through investments in communities, with particular relevance to social sustainability.